Kampala — THE discovery of oil in Uganda has the potential to double or triple current export earnings and place the country alongside the top oil producers in Africa, a civil society has said. International Alert, in its "Harnessing Oil for Peace and Development in Uganda" report, said such a boost to national income offered Uganda an opportunity to invest significantly in poverty alleviation and improving living standards for its people.

"As a shared resource with the DRC, oil presents an opportunity to build peaceful and mutually beneficial links across Uganda's borders, where tensions have been known to flare in the past," the report said.

"The discovery of oil has, in some instances, contributed to increased tensions with Uganda and the wider region as the impact of exploration of this resource has, for example, disrupted the livelihoods of some local fishing communities."

The report claims that these tensions could accelerate with continued exploration unless the potential conflict risks are factored into the development of the oil industry in Uganda.

"This means developing the industry to ensure that the impact on local communities is minimised, the rewards equitably distributed, and decisions affecting people's lives made transparently," it suggests.

International Alert contends that by taking a conflict-sensitive approach on the development of oil resources, Uganda could minimise the possibility of repeating the experiences of other developing countries that discover mineral wealth only to suffer a range of challenges.

"The discovery of oil, therefore, presents an economic, but also a peace-building challenge to local communities, the Government, private sector investors, donors and the civil society," the report states.

The report recommened an increase in transparency and principled leadership to promote opportunities of oil discovery for peace and development in Uganda.